Refer to the data in QS 12-6.

Furniture costing $55,000 is sold at its book value in 2008. Acquisitions of furniture total $45,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture?

CRUZ, INC.
Comparative Balance Sheets December 31, 2008 2008 2007 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 94,800 $ 24,000 Accounts receivable, net . . . . . . . . . . . . . 41,000 51,000 Inventory . . . . . . . . . . . . . . . . . . . . . . . . 85,800 95,800 Prepaid expenses . . . . . . . . . . . . . . . . . . 5,400 4,200 Furniture . . . . . . . . . . . . . . . . . . . . . . . . 109,000 119,000 Accum. depreciation—Furniture . . . . . . . (17,000) (9,000)
Total assets . . . . . . . . . . . . . . . . . . . . . . $319,000 $285,000 Liabilities and Equity Accounts payable . . . . . . . . . . . . . . . . . . $ 15,000 $ 21,000 Wages payable . . . . . . . . . . . . . . . . . . . . 9,000 5,000 Income taxes payable . . . . . . . . . . . . . . . 1,400 2,600 Notes payable (long-term) . . . . . . . . . . . . 29,000 69,000 Common stock, $5 par value . . . . . . . . . . 229,000 179,000 Retained earnings . . . . . . . . . . . . . . . . . . 35,600 8,400 Total liabilities and equity . . . . . . . . . . . . $319,000 $285,000 CRUZ, INC.
Income Statement For Year Ended December 31, 2008 Sales . . . . . . . . . . . . . . . . . . . . . . $488,000 Cost of goods sold . . . . . . . . . . . 314,000 Gross profit . . . . . . . . . . . . . . . . 174,000 Operating expenses Depreciation expense . . . . . . . $37,600 Other expenses . . . . . . . . . . . . 89,100 126,700 Income before taxes . . . . . . . . . . 47,300 Income taxes expense . . . . . . . . . 17,300 Net income . . . . . . . . . . . . . . . . $ 30,000.AppendixLO1